The Auditor Has Decided to Use Systematic Selection of Cash

question 6

Multiple Choice

The auditor has decided to use systematic selection of cash payments when testing the control that cheque payments are supported by a supplier's invoice, a purchase requisition and a goods received note. Each cheque comprises a sampling unit. There are 5000 cheques drawn (numbered 1-5000) and the total amount of cash payments is $10 million. The sample size is 20 and the random start is 127. Given this information, the sample interval is:

• A) 500 000.
• B) 250.
• C) 127.
• D) Some other amount.

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Definitions:

Social Category

A group of people who share a common characteristic or attribute but do not necessarily interact with one another.

Triads

A type of organized crime syndicate in China and in countries with significant Chinese populations.

Collective Good

Benefits or values that are shared and accessible by all members of a given community, often exemplified by public goods like clean air and public parks.

Partner Constrained

A situation in relationships where one partner limits the choices or actions of the other, often leading to power imbalances.